12 Things You Need to Know Before Buying No Exam Term Life Insurance

Quick Answer: No exam term life insurance lets you get covered — often for $500,000 or more — without a blood draw, physical, or doctor visit. Most policies are approved in 24–72 hours, with no waiting period before your coverage begins. Here are the 12 things you need to know before you apply.

Before You Buy No Exam Term Life Insurance…

The cost of no exam term life insurance appears to be somewhat of a mystery to many life insurance shoppers. How do you know if you’re really getting the best deal? How can you even be sure you qualify? Here are the 12 things you need to know before buying term life insurance with no exam:

It’s Actually Very Affordable, Contrary to Popular Belief

Though you may have heard otherwise, a no exam term life insurance policy may not actually be more expensive than fully underwritten life insurance policies. The key is to compare rates across different insurance companies. For companies that do offer no medical exam term life insurance, quoted rates are almost identical to rates for their policies requiring an exam. However, if you compare those no exam term rates to those of a few other different companies, chances are you’ll find more options that are less expensive. However, every company offers no exam policies so the ones that do may charge higher rates in general.

Is this true?

Let’s have a look at sample quotes for a term life insurance policy with an exam and no exam:

Sample Quotes: Exam Vs. No Exam Life Insurance

You’ll Get Your Policy Faster

A typical life insurance policy takes an average of six to eight weeks to process. With no exam term life insurance, eliminating the medical exam saves you valuable time since you don’t have to go through the hassle of scheduling an appointment and waiting on the doctor’s report that follows. This is great news especially if an individual is in the middle of divorce proceedings and has a court order to get a life insurance policy to cover alimony and child support. Instead of a couple of months, no exam term life insurance can sometimes get you covered in a matter of days.

For most simplified issue and accelerated underwriting policies, there is no waiting period. Coverage begins as soon as the policy is issued and your first premium is paid — meaning you’re protected from day one.

Cases where it takes longer or might result in a rejection include 

If an individual has,

• Long prescription history
• A criminal background
• Chronic medical conditions
• Recent or frequent foreign travel.

In these cases, the insurance company interviewers might turn down an applicant, or send your application in for a fully underwritten policy, which would require the medical exam.

It’s not a way to “cheat the system” to get lower rates.

Some people hear “no exam life insurance” and think “Great! I can get a better rate because my medical condition won’t be revealed by an exam!” Wrong.

A no exam life insurance policy is not a good way to try and “hide” your poor health in order to get approved at a better rate. There’s still a health questionnaire (detailed later in this article), as well as a Medical Investigations Bureau (MIB) check, a prescription history check, and a driving history check. Should anything come up in these background checks that look inconsistent with the way you answered the health questionnaire, you run the risk of getting denied approval, which can make it harder to get approved in the future.

If you do have any serious health concerns or conditions, such as diabetes, high cholesterol, or cancer, you might actually be more likely to get approved with a medical exam (a fully underwritten insurance policy), because the insurance companies will be able to better assess your health risk (albeit with potentially higher premiums than someone in good health). This leads us to the fourth point:

Pre-existing Conditions Matter

A pre-existing condition is a medical condition that started before a person’s health insurance benefits (or life insurance) went into effect. This includes things like diabetes, high cholesterol, etc. Insurance companies will carefully evaluate if these conditions are being monitored and maintained to the point where their status is considered “stable.”

>> Learn More: Life insurance with pre-existing conditions

In the case of diabetes, for example, an insurance company will want to know when you were diagnosed, how high your A1C is, and how much insulin you take. Usually, those in control of their blood sugar, with an A1C of 7.0 or less, will get approved.

About that Health Questionnaire

Because you won’t be seeing a doctor who can assess your health history and condition, life insurance companies issue a health questionnaire to their no exam life insurance applicants. Some common questions you’ll be asked will have to do with any history of substance use (smoking, alcohol consumption, etc.), your family health history, your personal health history, and any medications you take. You may also be asked about any criminal background or foreign travel.

Note: if you’d prefer to skip health questions entirely, guaranteed issue life insurance — sometimes called no medical question life insurance — is an option, though it comes with lower coverage limits and potentially a graded death benefit period.

Pro-tip: Don’t lie. Just don’t do it. Remember, there’s also the MIB and other background checks we talked about, so it’s worth reiterating that this is not an opportunity to hide ANYTHING in your history just for the sake of getting a lower rate. You only increase your chances of getting denied coverage by doing so. Intentionally putting misleading or fraudulent information on a life insurance application is grounds for rejection.

>> Find out: What happens when you lie on your life insurance application

No Exam Term Life Insurance May be More Limited — But Not Always

If you can’t see all the cards on the table, chances are you’ll place a lower bet. Life insurance companies are risking more by insuring someone without a medical exam because it’s harder to fully assess their actual health status and risk. Therefore, the face amount you’re able to receive on a no exam term life insurance policy (the full amount of coverage you’re purchasing) may be lower than if you had opted for a policy requiring a medical exam.

This is especially true of guaranteed issue life insurance. The death benefit amount on these policies is typically quite low, really only meant to cover funeral and burial costs. Additionally, guaranteed issue policies have what’s called a “Graded Death Benefit,” which means the death benefit usually won’t kick in until a couple of years after the policy is purchased. Those who apply cannot be denied, regardless of health status. However, you will pay a higher price for coverage without immediate access to it.

That said, healthy applicants using accelerated underwriting — where carriers assess risk through prescription history, driving records, and data modeling rather than a physical exam — can often qualify for $500,000 to $1 million or more in coverage with no exam required.

Term Life Insurance Comes With an Expiration Date

Carefully consider what term you’ll choose on your policy before you buy. Under or overestimating how long you’ll need coverage could cost you thousands due to renewal or conversion costs down the road when that policy expires. If you renew or extend a life insurance policy when the term is up, your premiums are going to increase simply because time has passed and you’ve aged…the older you are, the higher your premiums. If you’re converting the policy to a permanent or whole life insurance policy, your rates are definitely going to increase. This is because permanent life insurance can be up to 10 times the cost of term life insurance. Interesting right?

Be sure to carefully assess how long you’ll need coverage before you buy, so you don’t end up wasting money by extending or converting the policy later.

It’s always a good idea to calculate your needs and then decide your coverage length. Don’t forget to check out our free life insurance needs calculator:

Don’t Buy More Than You Need!

Much like choosing the right term for your policy, it is equally important to select the right coverage amount for your needs. Ask yourself a couple of questions:

• How many people depend on you for income?
• How much money do those people need to cover the cost of living?
• How long would it take for them to become financially independent after you die?

Think about things like college tuition, child care, and continuing support for a disabled or aging family member. If you own a business, consider how your death will affect business partners. All these factors will contribute to how much life insurance coverage you actually need.

A good tip for parents: When deciding how much coverage to buy, calculate 10x your income, plus any potential college expenses, per child.

If you’re not sure where to start, many companies have an online needs assessment tool you can use before you start looking for quotes. Try out our free life insurance needs calculator here.

The Time to Buy is When You’re Young and Healthy

With life insurance, the expectation is that the lower your health risks are, the better rates and coverage you will get. If you’re below the age of fifty and in relatively good health, no exam term life insurance — sometimes called no physical life insurance — may actually be ideal for you. If there are not any serious health concerns that would come up in a medical exam, a simple health questionnaire and background check may be all that is necessary to get someone in your condition approved quickly.

>> Read: What does life insurance medical exam test for?

Traditionally, it was thought that for people with high-risk health concerns, occupations or hobbies, or who were rejected by other insurance companies after a medical exam, it might be worth looking into a no exam term life insurance policy. These days, however, it’s actually more likely a candidate will qualify for a no medical exam policy if they’re in excellent health, and therefore pose a much lower risk for insurance companies to provide coverage without an exam.

There Are Other Ways to Cut Costs

The best way to find cheap life insurance without a medical exam is to start with your health. If you smoke, now is a great time to quit. If you’re overweight or have diabetes or high cholesterol, make diet and exercise part of your daily routine. Improving your health profile before you apply is the single most effective way to lower your no-exam term life insurance premium.

Another tip to lower the cost of term life insurance with no medical exam is to opt for annual premiums instead of monthly. This will save you the cost of any additional administrative or convenience fees tacked on to a monthly payment plan for your insurance policy.

Do Your Research

Comparing life insurance quotes online shopping online is the best way to find the best deal possible. Don’t settle for the first quote you get. Be sure to compare rates across a variety of different companies, especially when applying for life insurance without a medical exam. You can compare free life insurance quotes online at LifeQuote.

Talk to An Agent

Don’t assume you don’t qualify for no exam term life insurance coverage just based on your own research. Take that research to a licensed, independent life insurance agent who can assess your needs on a human level and help you search for the right policy for you. You can ask all your questions and be walked through the process from initial quote to final placement. You can contact one of our agents today by calling us at (800) 521-7873.

Frequently Asked Questions: No Exam Term Life Insurance

What is no exam term life insurance?

No exam term life insurance is a term policy that approves coverage without a traditional paramedical exam — no blood draw, no urine sample, no doctor visit. Instead, insurers use a health questionnaire, prescription history check, MIB report, and/or data modeling to assess your risk. Coverage terms, premiums, and approval times work the same as a standard term policy.

Is no exam term life insurance more expensive?

Not necessarily. Healthy applicants — particularly those under 50 — often qualify for no-exam rates that are nearly identical to fully underwritten rates. Carriers using accelerated underwriting are increasingly competitive on price. The biggest cost driver is still your age, health profile, and coverage amount, not the absence of an exam itself.

Is there a waiting period for no exam term life insurance?

For most simplified issue and accelerated underwriting term policies, there is no waiting period. Coverage is active from the policy issue date once your first premium is paid. Guaranteed issue policies are the exception — they often include a 2-year graded benefit period before the full death benefit is payable.

How much coverage can I get without a medical exam?

It depends on the carrier and underwriting type. Simplified issue policies typically cap at $350,000–$500,000. Carriers using accelerated underwriting may approve healthy applicants for $1 million or more. Guaranteed issue policies are the most limited, usually topping out at $25,000.

Who qualifies for no exam term life insurance?

Most applicants under 65 in reasonably good health can qualify. Younger, healthier applicants have the best chance of approval at competitive rates. If you have serious pre-existing conditions, a criminal history, or a complex prescription history, you may be redirected to a fully underwritten policy — or a guaranteed issue option if no-exam term coverage is unavailable to you.

What is no medical question life insurance?

No medical question life insurance — also called guaranteed issue life insurance — skips the health questionnaire entirely. Acceptance is guaranteed regardless of health history. These policies typically carry smaller death benefits (usually $5,000–$25,000), cost more per dollar of coverage, and include a graded benefit period for the first one to two years.

Can I get no exam term life insurance if I’ve been declined before?

Possibly. If you’ve been declined for traditional or simplified issue coverage, guaranteed issue life insurance may still be available — no questions asked. An independent broker can also help identify which carriers have the most favorable underwriting guidelines for your specific health profile, improving your odds before you formally apply.